Commercial space and long-term appeal

The commercial market continues to remain popular with investors in Dubai. There is currently a great range of developments from which to choose and the high levels of capital growth that are being achieved, particularly when purchasing at pre-launch, is keeping activity high in this market

Compounding this is the current under supply of commercial space available for rent and with vacancy rates of around 1 per cent in the office sector this activity is certain to continue, particularly for projects nearing completion.

Although at present, this demand versus supply imbalance helps fill commercial developments, as the imbalance gradually lessens, there are likely to be numerous Unique Selling Points (USPs) that will help give one project an edge over others.

USPs that help improve the functionality of a building should be given consideration by developers at the planning stage to ensure the long-term success and appeal of a project, rather than simply focusing on short-term gains for investors.

When it comes to selecting business premises, two key considerations should always be location and convenient access. .As additional stock becomes available, tenants are likely to become more selective and other prevailing factors will come into play. The wishlist may include: car parking, floor plates, building management, health and safety, elevator speeds and retail offering.

As a starting point, all developments should provide ample parking. I doubt that I am alone in my frustrations when searching for that elusive parking space around this city! It is concerning to think that some of the new developments under construction will not provide a sufficient level of car parking to accommodate the building at capacity.

Side-effects

Secondly, a side effect of creating a unique design and elevation for a tower, is the varied shapes and sizes of the floor plates.. From a tenant's point of view, where optimum usage of the floor space and an easily divisible plate is critical, current plates do not always provide for this. This issue raises the need for developers to move their focus from the current "outside- in" trend to more of an "inside-out" client focused strategy.

There is no doubt that a recently completed project looks fabulous when it is all shiny and new but unfortunately, this pristine appearance doesn't last indefinitely and only professional management of the building can help maintain these high standards. From the outset, to ensure the long-term upkeep of a building and therefore it's attractiveness to tenants, it is necessary to recruit a team of professionals to manage maintenance and operational issues in relation to both the building and its tenants.

Additionally, health, safety and environmental standards, which are a pre-requisite for developments in many developed real estate markets, should begin to take on a more pivotal role here. The need for a greater emphasis on health and safety speaks for itself and we are now also seeing an increased sensitivity towards environmental issues with more energy efficient developments in the pipeline.

Finally, retail, often the first portion of a development to sell; has the ability to totally set the tone of a building. The presence of strong mix of branded retail outlets can significantly raise the profile and awareness of a tower, thus attracting a similar profile of commercial tenants.

So.... while at the moment, when it comes to finding office space, beggars can't be choosers and firms need to take whatever is available, in time they may have greater options and those developments that best cater to the end users' needs will prevail.

The writer is managing director of Better Homes.